The ATO continues to focus on the collection outstanding taxes re BAS’s / GST etc….
For any Business, please ensure you know and understand your lodgement cycles for Super, BAS, PAYG, FBT and CGT, etc. The ATO has announced changes from 01/04/2025, consider below, and please ensure you are aware of potential changes that may affect your Business. Lodgement cycles are per ATO link below. Please review ATO websites regularly or consult with your Tax professional.
Monthly GST for non-compliant small businesses: ATO
The ATO has announced that from 1 April 2025, it will be moving around 3,500 small businesses from quarterly to monthly GST reporting – those with a history of non-payment, late or non lodgment, or incorrect reporting in order to improve their compliance. Changes to reporting cycles will remain in place for a minimum of 12 months as part of the ATO’s “Getting it right’” campaign. The ATO will contact small businesses and their tax professionals when their GST reporting cycle is changed from quarterly to monthly. According to the ATO, small businesses that voluntarily moved their GST reporting and payment cycle to monthly have found it easier to manage their cash flow and meet their obligations with smaller, more manageable payments. For many, reporting and paying GST monthly aligns better with their reconciliation process, which is more efficient and saves time.
ATO to focus on 22,000 tax debtors
In his opening statement to the Senate Economics Legislation Committee, the Commissioner stated that the ATO is ‘moving harder and faster to collect priority debt’. The Commissioner noted that only 22,000 taxpayers are responsible for $11 billion of the total tax debt value — that is, about 1% of the total debtors is responsible for 20% of what’s owed. These taxpayers are of varying sizes and it is this group where the ATO’s focus lies. The priority debt includes unpaid superannuation guarantee, PAYG withholding and GST. ‘This approach we are taking to collect the tax owed to the government is deliberate and targeted, with action being taken for those who repeatedly refuse to engage with us and continue to ignore our reminders. For these taxpayers, we are moving more urgently to deploy the full powers available to us, including issuing Director Penalty Notices, taking garnishee action, and – if necessary – taking wind up action. We are beginning to see the effects of this work, through reduction in the amount of debt owed to the government.
Information is from, Technical Advantage is the Institute of Public Accountant’s fortnightly e-newsletter providing technical updates from regulators and government that affect the profession. Please ensure you liaise with a Tax professional.
